Khadi and Village Industries Commission Mumbai

SISAL FIBRE PRODUCTION UNIT

Introduction

The Sisal leaves are abundantly available throughout the year. Some plants are cultivated and also wild grownThe
individuals collect leaves from the field according to their requirements and carry on the extraction on the newly
devised Raspador machine, which gives attractive income.The fibre thus extracted is sold by individuals directly.
PROSPECTS: Considering the availability of raw materials, marketing facilities etc, there is bright scope for its
development.

Name of the Product :

Project Cost :
a Capital Expenditure
Land
Workshed in sq.ft
Equipment

Sisal Fibre Production unit

:
100
:

Own
30,000.00
75,000.00

Rs.
Rs.

Respadors Machine Including electric motar 5 HP , Other hand tools

3
Sr.No.
1

Total Capital Expenditure

Working Capital
TOTAL PROJECT COST :

Estimated Annual Production Capacity:

Particulars
Capacity in No./Q.
Sisal Fibres
1000.00
TOTAL

Raw Material

Labels and Packing Material

Wages (Skilled & Unskilled)

Salaries

105,000.00
48,000.00
153,000.00

Rs.
Rs.
Rs.

1000.00
:

(Rs. in 000)

Rate
25.00
25.00

Total Value
253.00
253.00

Rs.

75,000.00

Rs.

5,000.00

Rs.

75,000.00

Rs.

48,000.00

PAGE ( 2 )
8

Administrative Expenses

Overheads

10

Miscellaneous Expenses

11

Depreciation

12

Insurance

13

Interest (As per the PLR)

a. C.E.Loan
b.

Rs.

24,500.00

Rs.

2,400.00

Rs.

1,800.00

Rs.

9,000.00

Rs.

1,050.00

Rs.

13,650.00

Rs.

6,240.00

Rs.

19,890.00

Rs.

89,000.00

Variable Cost

Rs.

163,640.00

Requirement of WC per Cycle

Rs.

42,107.00

:
:

W.C.Loan

Total Interest
14

Working Capital Requirement

Fixed Cost

Cost Analysis
15
Sr.No.
1
2
3
4
5
6
Note

Particulars

Capacity Utilization(Rs in '000)

100%
60%
70%
80%
Fixed Cost
89.00
53.40
62.30
71.20
Variable Cost
164.00
98.40
114.80
131.20
Cost of Production
253.00
151.80
177.10
186.00
Projected Sales
350.00
210.00
245.00
280.00
Gross Surplus
97.00
58.20
67.90
77.60
Expected Net Surplus
88.00
49.00
59.00
69.00
All figures mentioned above are only indicative.
: 1.
2.
If the investment on Building is replaced by Rental then
a.
Total Cost of Project will be reduced.
b.
Profitability will be increased.
c.
Interest on C.E.will be reduced.